PPP is Not Just About Private Finance — It is About Managing Risk Better

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PPP is Not Just About Private Finance — It is About Managing Risk Better

A McKinsey & Company report, “A Smarter Way to Think About Public–Private Partnerships,” makes an important point: the real value of PPPs lies in harnessing the private sector’s ability to assess, price and manage risk across the project life cycle.

The objective should not be to transfer maximum risk to the private sector, but to achieve optimal risk allocation—placing each risk with the party best able to manage it. Done well, this can support projects being delivered on time, on budget and with better use of public resources.

PPP = Optimal Risk Allocation + Private Capital at Risk + Life-Cycle Accountability

For strategic advice on PPP & Infrastructure Finance:

Rajeev Chadha

Director, Adisri Strategic Advisors

Strategic Advisor to Government & Private Sector

📞 +91 87002 20087

✉️ rajeev@adisristrategic.com

🌐 www.adisristrategic.com

For more PPP insights, subscribe to ADISRI Infradesk:

🌐 www.adisriinfradesk.com

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